UPSC CSE Prelims
Question 19
Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?
View correct answer and explanation
Correct answer: C
Correct Option: C (A bill of exchange)
Explanation: A hundi was an indigenous negotiable credit instrument used for remittances, trade payments and financing, functioning similarly to a bill of exchange.
Option-wise Analysis:
A. Incorrect - A royal advisory order is not a negotiable commercial payment instrument.
B. Incorrect - Daily-account registers record transactions but do not themselves transfer funds.
C. Correct - a hundi functions as a bill of exchange/remittance instrument.
D. Incorrect - A feudal command is unrelated to the mercantile hundi system.